The Public-Private Partnership (PPP) Center of the Philippines plays a crucial role in facilitating the country’s PPP Program. PPPs in the Philippines have gone through several transformations since 1990.
Early beginnings
Section 20, Article II of the 1987 Philippine Constitution recognizes the private sector’s indispensable role in nation-building. In 1990, the passage of Republic Act (RA) No. 6957 entitled, “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for other Purposes,” also known as the Build-Operate-Transfer (BOT) Law brought the participation of the private sector into the frontline of development efforts. This law provided the legal framework for private sector participation in infrastructure projects in the country.
In 1993, President Fidel V. Ramos issued Memorandum Order No. 166 directing the Coordinating Council of the Philippine Assistance Program (CCPAP) of the Office of the President to establish a BOT Center with the CCPAP Chairman as BOT Action Officer.
In 1994, the BOT Law was amended by RA No. 7718, expanding the scope to include various PPP modalities aimed at making it more flexible and attractive to private investors.
In 1999, under President Joseph E. Estrada, the CCPAP-BOT Center was reorganized into the Coordinating Council for Private Sector Participation (CCPSP) by virtue of Administrative Order No. 67, expanding its coverage and formalizing technical assistance support.
In 2002, President Gloria Macapagal-Arroyo signed Executive Order (EO) No. 144 converting the CCPSP into the BOT Center and lodged it under the Department of Trade and Industry (DTI).
Transformation into the PPP Center of the Philippines
In 2010, President Benigno S. Aquino III signed Executive Order No. 8 reorganizing and renaming the BOT Center as the PPP Center of the Philippines and transferring its attachment from the DTI to the National Economic and Development Authority (now known as the Department of Economy, Planning, and Development pursuant to RA No. 12145).
In 2013, Executive order No. 136, established the PPP Governing Board (PPPGB) as the overall policy-making body for all PPP-related matters, including the Project Development and Monitoring Facility. The PPPGB is chaired by the Socioeconomic Planning Secretary, with the Finance Secretary as Co-Chair. The PPP Center acts as the Secretariat of the PPPGB, while members of the Board include the Secretaries of Budget and Management, Justice, Trade and Industry, the Executive Secretary, and the Private Sector Co-Chairperson of the National Competitiveness Council (NCC).
Due to the reorganization of the NCC, EO No. 30, s. 2023 was issued updating the composition of the PPPGB to include one representative from the private sector, coming from a reputable organization in the banking, business, or infrastructure sector, to be appointed by the President.
Institutionalization under the PPP Code of the Philippines
The PPP Center of the Philippines was further institutionalized through RA No. 11966, also known as the PPP Code of the Philippines, which was signed into law on December 5, 2023, and became effective on December 23, 2023. The PPP Code codified the PPP Center as the primary agency responsible for facilitating the implementation of the country’s PPP Program and serves as the central coordinating and monitoring agency for all PPP projects. The PPP Code’s Implementing Rules and Regulations was signed into law on March 21, 2024, and took effect on April 6, 2024.
Under Section 25 of the PPP Code, the membership of the PPPGB was expanded to include the Secretaries of the Interior and Local Government, and Environment and Natural Resources, the Chairperson of the Commission on Higher Education, and the Executive Director of the PPP Center. Under the new law, the private sector representative from the infrastructure sector is now appointed by the PPPGB.
The PPP Center: Building the Nation Through Public-Private Partnerships
Over the years, the Center has been instrumental in several notable projects, such as the Mactan-Cebu International Airport Project, Cavite-Laguna Expressway, PPP for School Infrastructure Project, among other high-impact projects, which have significantly contributed to the country’s infrastructure development. The PPP Center continues to champion the country’s PPP Program by assisting national and local implementing agencies in all aspects of project preparation, providing project advisory and facilitation services, empowering PPP stakeholders through various capacity building activities, and recommending policies that enable successful PPPs.
Empowered by the PPP Code, the PPP Center of the Philippines continues to effectively carry out its mandate, fostering sustainable infrastructure development and contributing to the Philippines’ overall economic growth and development.
